On Day 2 of MEGATRANS, Peter Jones, Managing Director, Prological, moderated a panel called Beyond Good Intentions – How to move from ambition to action in supply chain sustainability.
Sustainability in supply chain operations has become an increasingly important focus for businesses globally, but achieving tangible results requires navigating complex challenges.
At the 2024 MEGATRANS Expo, industry leaders gathered for a panel discussion titled Beyond Good Intentions: How to Move from Ambition to Action in Supply Chain Sustainability.
Sponsored by Prological, this session offered an exploration of how sustainability goals can be implemented in Australian supply chains, drawing on both local insights and international best practices.
Setting the stage for change
Peter Jones, Managing Director and Founder of Prological, moderated the panel and kicked off the discussion by emphasising the urgency of sustainability.
“Sustainability is now on the agenda of every business we speak with,” says Peter.
“The challenge is taking the global ambitions of large corporations and figuring out how to make them work in the Australian context. There’s often a gap between what’s being asked and what’s achievable here.”
The country’s unique geography, regulatory environment, and economic conditions mean that what works elsewhere may not be as easily implemented.
The panellists shared examples of attempts to bridge this gap, including Global Express’s recent $200 million grant to trial electric vehicles (EVs) in metropolitan Australia, marking a step forward in sustainable logistics.
The European-Australian sustainability divide
Richard Phillips, Head of Supply Chain at JLL, highlighted how industrial real estate plays a central role in the sustainability conversation.
“In industrial real estate, we’re faced with a bit of an oxymoron,” explains Richard.
“The process of building warehouses inherently involves tearing up greenfield land and generating massive amounts of embodied carbon. About 80 per cent of the carbon footprint of a building is generated during the construction phase, so there’s a limit to how much we can improve its sustainability once it’s built.”
He points out that in Europe, sustainability has become a key consideration in industrial developments, with initiatives like carbon-neutral buildings being implemented. However, he admits that replicating such models in Australia presents commercial challenges.
“It’s about finding a balance between what’s financially viable and what’s environmentally sustainable,” says Richard.
“We’re seeing innovations like solar panels becoming standard in new developments, but the cost of green materials like concrete and steel is still prohibitive for most developers.”
Despite these barriers, Richard remains optimistic about the future, suggesting that industrial sites could soon play a role in electricity production.
“We’ve started to hear discussions about installing wind turbines on industrial properties, following examples from Europe. It’s still early days, but this could be part of the long-term solution for making industrial developments more sustainable,” he says.
Government’s role in driving sustainability
Andrew Newman, Director at Victoria’s Department of Transport and Planning, emphasised the government’s role in supporting industry efforts to decarbonise the freight sector.
“Government is on a journey as well,” says Andrew. “We’ve set high-level targets, like achieving net zero by 2050, but now we’re beginning to dig into what needs to happen in transport to make that a reality.”
One of the key challenges, he explains, is the long lifespan of heavy vehicles in Australia.
“The average truck is on the road for about 15 to 16 years, so a truck bought today will still be in use in 2045. We need to encourage the uptake of EVs and other low-emission vehicles now if we want to reach our targets,” says Andrew.
He also emphasised the importance of aligning public policy with private investment to drive meaningful change.
“Governments need to send clear signals to industry that there’s a commercial benefit to investing in sustainable technologies.”
Balancing commercial and environmental sustainability
Dr Eamon McGinn, Partner at Deloitte Access Economics, added that in the transport sector, sustainability goals don’t always have to come at the expense of commercial success.
“There’s actually an overlap between financial and environmental sustainability in transport,” says Eamon.
“For example, some technologies, like EVs, can offer lower operating costs and improved reliability over time, which helps both the bottom line and the environment.”
However, Eamon warns that businesses should be realistic about the pace of change.
“Some of the larger businesses that set ambitious sustainability targets a few years ago are now delaying those targets, because they’re realising just how difficult it is to achieve them,” he said. “The focus should be on achieving smaller, incremental wins rather than aiming for an overnight transformation.”
The need for practical solutions
Throughout the discussion, the panellists stressed the need for practical, achievable solutions. Peter highlighted that many businesses focus on symbolic gestures rather than meaningful change.
“You’ll see new developments with a beehive or two and call it an environmental initiative, but that’s not enough,” he says. “We need to think bigger, like using industrial roofs for solar panels or providing charging stations for EVs.”
Richard echoed this sentiment, adding that while the challenges are considerable, progress was being made.
“In recent years, it’s become standard to cover the entire roof of a new industrial building with solar panels,” he said. “That’s a real step forward, but we need to keep pushing the boundaries and looking for new opportunities to integrate sustainability into the design and operation of these facilities.”
The role of capital in driving change
One of the less obvious drivers of sustainability supply chains is the availability of capital.
“It’s not always the Australian customer or developer pushing for sustainability,” explains Richard. “Often, it’s the global investors providing the capital who are setting strict sustainability criteria. They’re mandating that developments meet certain environmental standards, whether or not the local market is ready for it.”
This international pressure is forcing Australian developers to adopt sustainable practices, even if the immediate financial return isn’t clear.
“Capital is the stick that’s pushing us in the right direction,” says Richard. “If you want to attract investment, you need to meet these global sustainability benchmarks.”
As the session drew to a close, Peter summarised the key takeaways from the discussion.
“What we’re seeing is that sustainability is no longer just a nice-to-have. It’s a business imperative,” he says.
“But making the transition from ambition to action requires both industry and government to work together, balancing environmental goals with commercial realities.”
The panellists agreed that while Australia faces unique challenges in its pursuit of supply chain sustainability, there are also opportunities.
By leveraging international best practices, embracing new technologies, and fostering collaboration between the public and private sectors, Australia can take meaningful steps towards a more sustainable future.
In closing, Peter left the audience with a call to action: “We’ve got the ambition, and now it’s time to turn that ambition into tangible results. It won’t be easy, but with the right approach, we can create a supply chain that’s not only sustainable for the environment but sustainable for business as well. The objective is to maintain progress, without getting distracted by perfection.”
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